Raise Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: RAISE PRICE, REDUCE PERFORMANCE AND ITS COST

CHOICE 2 ISOLATE SEGMENTS: CUSTOMER SEGMENTS WITH HIGH SERVICING COSTS

CHOICE 3 COMPONENT: SET OR RAISE MINIMUM PURCHASE REQUIREMENTS

No. SIC Year Notes
1 4812 2005 Prepaid wireless plans require that users buy airtime a few months in advance to keep the service active. If the service is not kept up, a reactivation fee may apply. TracFone, the leader in the U.S. market requires that customers buy air time every two months although a more expensive card is available that is valid for a year. Virgin Mobile requires validation every three months.

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